Farm Management Software Blog

"Let’s not make decisions based on isolated, arbitrary assumptions such as indirect cost allocations."

In his March 20112 Top Producer magazine column, Is Your Margin Analysis Lying to You?, CPA Paul Nieffer warns of the danger of comparing crop margins based on assumptions (i.e. dividing all machinery costs by all acres). The solution is to employ Activity-Based Costing (ABC) through managerial accounting. FBS offers this capability through our E.CLIPSE software and Nieffer's firm, CliftonLarsonAllen, provides consulting services for FBS clients.

We'd love to hear your thoughts, practices and questions in this area.